The purchase of cars through leasing and bank loans is developing quite actively. At the same time, there are significantly more leasing companies compared to banks that provide car loans.
This was discussed by Serhii Kiporenko, Head of сar loans at GLOBUS BANK.
In the first five months of 2024, the share of new car sales by leasing companies amounted to 30%, while banks accounted for up to 70% of new car credit sales. In the used car market, the situation is the opposite: 70% of cars are sold by leasing companies and only 30% through banks.
The banker believes that this ratio will continue in the future, as the used car market is several times larger than the new car market. In addition, the policies of leasing companies are more lenient, both in terms of the condition of used cars and the list of requirements for customers. Meanwhile, banks, considering a number of risks associated with lending in the used car segment, are more cautious in this market: they are more inclined to lend when the seller of the used car is a legal entity, such as a car dealership. Moreover, the sale of such cars is usually accompanied by notarization of pledge agreements, which incurs additional costs for the borrower.
"Currently, banks are ready to finance the purchase of cars whose age at the end of the loan term will not exceed 10-12 years, with a minimum down payment of 20% of the car's value and without mandatory notarization of pledge agreements. Additionally, some banks are already willing to finance clients when the seller is not only a legal entity but also an individual," Serhii Kiporenko elaborated.
